New Zealand’s Gain

Wanganui Chronicle, Volume 74, Issue 147, 24 June 1931, Page 7

New Zealand’s Gain

WAR DEBTS OWED BRITAIN BENEFIT TO THE BUDGET (By Telegraph—Press Association —Copyright) Received Juno 2.3, 11.15 p.m. LONDON. June 23. The Morning Post’s special representative .ays in regard to Mr Hoover’s proposal, that taking for granted th*.t Britain will lose the full payments from tho Dominions, Australia will have a, net gain ■ ’ approximately £3,100,000 after a loss of £830,000 in German reparations, and New Zealand will gain £1,060,000 after a loss of £340,000 of reparations. In .1922, £27,532,164 of Ne z Zealand’s public debt was owing to the British Government, all but £1,191,919 of this being on account of war expenditure, and was funded. Funding was carried out on an annuity basis of 6 per cent, the. total payment each year being £1,651,930. Interest at the rate of £4 19s 5.88 d per cent, the balance of the 6 per cent going in reduction of the debt. The first half-yearly payment of £825,965 was made to the British Government on Deeoml er .1, 1922, a:.d at March 31, 1930, the total had been reduced to £24,747,342, it being estimated that the whole amount would bo repaid by 1958. It is pointed out in official circles in Wellington that the first hajf-ycarly payment for this year fell due on June 1, and the sum of £825,000 was then paid. New Zealand has also received certain reparation moneys al. ady this year, but in the full 12 months the Dominion would bo relieved of over £1,000,000 if the suspension plan were carried out. New Zealand receives about £350,000 in reparati -'t each year. Should the scheme bo put into operalion during the current year, the Budget will benefit considerably, although it is probable that the effect of any suspension of payments would bo reflected in the financial operations extending over two years’ Budgets.